St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1887-03-26
THE BANK OF FRANCE.
An Index Of the Prosperity Of the
Republic.
Something About It's History and Present
Management-Over o1OO, 900, 900
Standing to Its Credit-Its
Paper In Circulation and
Metallic Basis.


Next to the Bank of England, the
Bank Of France is the largest and most
important of all the other banks in
Europe. Occupying very nearly the
same position in France as the Bank of
England does in this county, it is in
many respects similar, and performs for
the country the same kind of duties.
The public moneys are deposited with
the Bank Of France: it alone has the
sole right of issuing notes for that
country. CThis is what Sir Robert Peel
would have attached to the privileges
of the Bank of England. if he had been
able; but usage and vested interests
were too powerfully Its capital is
possessed by a proprietary whose liza
bilities are Of a similar nature to those
Of any other banking institution. 1t
opens accounts with properly introduced
persons. and keeps in its Golfers the
metallic reserves.
Having mentioned these analogies be-
tween these two great banks, there are
points where their conduct diverges.
The transactions of the Bank Of En-
gland are on a larger scale. owing to
the larger mercantile operations in this
country. The commercial habits of the
French are plainly indicated in the
class of bill business which their chief
bank undertakes. During the whole Of
last year it discounted no fewer than
1880, S39 bills under four pounds. most
Of them payable at private addresses.
II is an unusual thing for an English
banker to take bill under ten pounds,
and he will require satisfactory reasons
for discounting bills payable at private
addresses. 1t is presumed here that in
such a case the acceptor can not be
substantial man, or he would have a
banker.
Another point Of divergence, again,
is in the government of the bank. where
in the French have shown their belief in
the efficiency and effectiveness of gov
ernment control. Our own government
can not in any way interfere with the
operations of the Bank of England, ex-
cept in respect Of its note issue. The
French bank is presided over by gov
ernor, appointed by the government.
who also appoints the two deputy
governors. The three highest Offices are
thus held by government men; and the
Office of the governor is held for life. 1t
is his duty to see that the obligations
imposed upon the bank by the govern
mcnt are in all respects carried out, and
to act as the connecting link between it
and the government. In addition to the
governor and two deputy-governors. the
general assembly, consisting Of two
hundred Of the largest shareholders,
elect the general council. which is made
up of fifteen regents and three censors.
The manufacturing and trading inter-
ests are supposedto be duly represented
in the council. for five of the regents
must be chosen from each of these
bodies. There is yet another committee
of twelve persons. who must be share
holders carrying on business in Paris,
appointed by the censors. This COM
mittee has the responsibility of examin-
ing and passing all the bills taken for
discount.
The bank was established in 1903 by
the Emperor Napoleon Bonaparte. Its
constitution has been slightly modified
from time to time. as circumstances
have required. 1t has been successfully
and prudently managed. though there
have been times when its existence has
been threatened. In 1848, during the
Revolution. it made large advances to
the government and to the city Of Paris.
which. combined with = severe drain
on its gold, strained its resources to so |
great an extent that it was compelled
to suspend specie payments. To lessen
the evil Of this measure and limit the |
Inconvenience arising therefrom, its
notes were made and have continued TO
be legal tender.
The reports annually issued bv the |
council of this bank to the shareholders |
are full of interesting and instructive |
details. whereby comparison with those |
of other years. and the progress of the |
business. can be followed. and the pub
lie support estimated. These reports
present curious study to bankers and |
economists in this country. for they
afford a glimpse of the nature of the |
banking business carried on in France |
and OF the commercial habits of the |
French people. To the ststistican they |
form . repertory Of figures from which |
he cau construct tables Of the trading |
transactions of the country, always inn |
inpOftant and valuable in history, |
Front the report before US for the yeal
1885 we shall lay before our readers |
soms. Of the items mentioned.
The Bank Of France not only informs
its shareholders Of the amount due to
is castomerA but also Of the total |